Online advertising spend is set to rise by 70% this year according to Forrester Research, defying previous reports from dotcom companies which predicted revenue is drying up due to a lack of audience on the web.
Forrester said spend in Europe will double to £750m by the end of the year, up from £434m for last year.
The prediction comes after this year's Christmas season, which saw ad budgets fall every month.
Although defying doom and gloom in the industry, Forrester's research did show a slowdown in the growth of ad spend for this year.
Web portal Yahoo! makes most of its money through selling ads, and outlined a poor outlook for the next year, predicting a growth of only 20%. It put its falling revenues down to the dotcom backlash.
But Microsoft is more buoyant, and claimed its revenues to carry on growing at 50% each year. It said more people were using the net, staying on for longer and buying more online.